Despite global economic uncertainty, UAE IPO momentum continues to grow rapidly. Minor market delays have occurred, yet strong investor demand keeps offerings on track. Experts believe regional IPOs will exceed last year’s performance.
JPMorgan’s regional head, Aloke Gupte, highlighted short-term delays, but he confirmed that UAE IPO momentum remains firm. Some companies were prepared to list but paused due to global disruptions. For instance, Etihad Airways postponed its $1 billion IPO, awaiting approval from its main shareholder, ADQ.
Still, the outlook remains positive. Gupte mentioned that IPO activity in the UAE could regain pace after summer. Global challenges like trade disputes, fluctuating oil prices, and currency volatility caused some delays. However, the region’s strong fundamentals continue to support market growth.
Dubai Holding’s plan to list a 12.5% stake in its residential REIT reflects rising investor trust. This $500 million listing reinforces UAE IPO momentum, standing out as a major global move in recent weeks. Dubai’s strong market performance shows regional stability despite external shocks.
Liquidity still poses a challenge, as investors lean toward safer, long-term options. To tackle this, Gupte recommended several measures to maintain strong IPO activity in the UAE. These include rights offerings, secondary share sales, and a gradual rollout of derivative instruments. Such steps could help enhance market trading levels.
The region’s promising sectors, such as technology, real estate, healthcare, and pharmaceuticals, will continue fueling UAE IPO momentum. Gupte also stressed the importance of local asset managers. Strong domestic participation supports market stability, especially during uncertain times.
Countries like the UAE, India, and Japan performed well over the past year. Their robust local investment ecosystems helped them maintain IPO activity. In contrast, Europe lacked similar investor support, leading to fewer listings.
In conclusion, UAE IPO momentum remains strong despite global instability. Local investor strength, sector growth, and smart market strategies ensure continued success in the months ahead.
